Stocks nosedived sharply on Jun 9 as investors awaited inflation data. Economists surveyed by Dow Jones expect the consumer price index to be up 8.3% year over year in May, the same as April,
as quoted on CNBC. Investors are waiting to see if prices have hit a top, as this could mean a more hawkish Fed.
“The fact that people have literally been talking about this report for the last several days illustrates how much of an issue inflation has become for the market over the last six months since Fed Chair Powell first started to take a more hawkish approach to inflation,” Bespoke Investment Group said in a note to clients, as quoted on CNBC.
On Jun 9, the Dow Jones Industrial Average fell 638.11 points, or 1.94%, to close at 32,272.79. The S&P 500 dropped 2.38% to settle at 4,017.82, and the Nasdaq Composite shed 2.75% to come in at 11,754.23. Struggles in the tech space were palpable.
Casino stocks were some of the worst performers in the S&P 500, with Las Vegas Sands falling 5.6% and Caesars Entertainment sinking 3.8%. Chinese tech stocks gave up their recent gains and dragged down the Nasdaq, with Pinduoduo sliding 9.6%.
Against this backdrop, inverse ETFs recorded gains. But below we highlight a few winning regular ETF areas that gained on Jun 9.
UK natural gas prices
jumped 33% on Thursday after an explosion closed a Texas export terminal. The Freeport LNG terminal will be shut for at least three weeks after Wednesday's fire. The supply conditions of natural gas remain tight given the ongoing conflict between Russia and Ukraine, which is disrupting global supply in an already tight-supply market. United States 12 Month Natural Gas ETF ( UNL Quick Quote UNL - Free Report) – Up 3.27% United States Natural Gas ETF ( UNG Quick Quote UNG - Free Report) – Up 3.26% Agriculture
Sugar prices rallied due to higher gasoline prices. Higher crude and gasoline prices benefit ethanol prices. This may lead Brazil's sugar mills to sidetrack cane crushing and focus on ethanol production instead of sugar production. This will eventually lower sugar supplies and hence trigger short covering in sugar futures,
per a barchart.com article.
U.S. soybean futures hit a record-high closing price and is nearing an all-time intraday high, according to Dow Jones, due to strong export demand for U.S. supplies and the start of dry weather in the Corn Belt, as quoted on Seeking Alpha.
Soybeans for July delivery settled at $17.69 per bushel on the Chicago Board of Trade, a record-high closing price, after peaking at $17.84, the highest intraday price on a continuous basis for the most-active contract since September 2012, the Seeking Alpha article indicated.
Teucrium Sugar ETF (CANE) – Up 1.3% Teucrium Soybean ETF ( SOYB Quick Quote SOYB - Free Report) – Up 0.5% Defensive ETFs
Investors should be prepared for a further crash in the market following recessionary talks. Defensive ETFs could go a long way in restoring the value of one’s portfolio against this edgy backdrop.
First Trust Managed Futures Strategy ETF FMF – Up 1.2% KFA Mount Lucas Index Strategy ETF ( KMLM Quick Quote KMLM - Free Report) – Up 1.1%